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DECISION No. 1387/QD-TTg OF DECEMBER 29, 2005, ON HANDLING OF ILLEGAL REGULATIONS ON INVESTMENT PREFERENCES AND INCENTIVES, PROMULGATED BY PROVINCIAL/MUNICIPAL PEOPLE'S COMMITTEES

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 12, 1996 Law on Promulgation of Legal Documents, and December 16, 2002 Law No. 02/2002/QH11 Amending and Supplementing a Number of Articles of the Law on Promulgation of Legal Documents;

Pursuant to the December 3, 2004 Law on Promulgation of Legal Documents by People's Councils and People's Committees;

Pursuant to the Government's Decree No. 135/2003/ND-CP of November 14, 2003, on examination and handling of legal documents;

At the proposal of the Minister of Finance in Official Letter No. 11236/BTC-PC of September 7, 2005, the Minister of Planning and Investment in Official Letter No. 5834 BKH/PTDN of August 29, 2005, the Minister of Justice in Report No. 2451/BC-BTP of August 17, 2005, the Minister of Natural Resources and Environment in Report No. 70/BC-BTNMT of August 1, 2005, the Minister of Trade in Official Letter No. 5466/TM/KH-DT of November 8, 2005, the Minister of Home Affairs in Official Letter No. 3275/BNV-TT of November 11, 2005, and the Minister-Director of the Government Office,

DECIDES:

Article 1.- Regarding the effect of illegal regulations

1. To suspend the implementation effect of illegal regulations on investment preferences and incentives, promulgated by 31 provinces and centrally run cities named in the List in Appendix I to this Decision, as from January 1, 2006, except cases defined in Clause 2 of this Article.

2. For illegal provisions on investment preferences and incentives in documents, mentioned or not yet mentioned in the List in Appendix I to this Decision, which have been annulled or replaced by other legal documents by provincial/municipal People's Committees before the effective date of this Decision, their implementation effect shall cease according to the provisions of the annulling or replacing legal documents.

Article 2.- Responsibilities of provincial/municipal People's Committees

1. The People's Committees of 32 provinces and centrally run cities (including Can Tho city and Hau Giang province divided and separated from former Can Tho province) named in the List in Appendix I to this Decision shall have to immediately annul the existing illegal provisions on investment preferences and incentives.

2. Provincial/municipal People's Committees shall have the responsibilities:

a/ To review by themselves, suspend the implementation of, and annul immediately the existing illegal regulations on investment preferences and incentives which are not yet mentioned in the List in Appendix I to this Decision;

b/ To make lists of investment licenses or investment preference certificates containing illegal regulations which they have granted to investors before January 1, 2006, according to a set form, and send them to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Justice and the Government Office for sum-up and report thereon to the Prime Minister for consideration and decision;

c/ To report to the Prime Minister on the results of implementation of Clause 1 (if any) and Points a and b, Clause 2 of this Article before March 1, 2006.

Article 3.- Responsibilities of concerned ministers and heads of agencies

1. The Minister of Planning and Investment:

a/ To assume the prime responsibility for, and coordinate with the Minister of Finance, the Minister of Justice, the Minister of Natural Resources and Environment, the Minister of Trade, the Minister-Director of the Government Office, and heads of concerned ministries, branches and agencies in, overseeing the implementation of this Decision, and report on the results of implementation to the Prime Minister before July 1, 2006;

b/ To assume the prime responsibility for, and coordinate with the Minister of Finance, the Minister of Justice, the Minister of Natural Resources and Environment, the Minister of Trade, the Minister-Director of the Government Office, and heads of concerned ministries, branches and agencies in, reviewing or revising according to their competence, or propose competent state agencies to revise regulations on investment preferences and incentives in accordance with the Investment Law which was passed on November 29, 2005, by the XIth National Assembly at its 8th session.

2. The Minister of Home Affairs shall assume the prime responsibility for, and coordinate with the Minister of Justice, heads of concerned ministries, branches and agencies, and presidents of provincial/municipal People's Committees which promulgated illegal regulations-containing documents in, guiding responsible agencies and persons to strictly examine the responsibilities of agencies, officials and employees who had advised on, compiled, evaluated, submitted, approved, signed, and promulgated, documents containing illegal regulations on investment preferences and incentives.

Article 4.- Implementation effect

This Decision takes effect as from January 1, 2006.

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall have to implement this Decision.

Prime Minister

PHAN VAN KHAI

APPENDIX I

LIST OF DOCUMENTS CONTAINING ILLEGAL REGULATIONS ON INVESTMENT PREFERENCES OR INCENTIVES WHICH WERE PROMULGATED BY PEOPLE'S COMMITTEES OF 31 PROVINCES AND CENTRALLY RUN CITIES AND MUST BE HANDLED

(Promulgated together with the Prime Minister's Decision No. 1387/QD-TTg of December 29, 2005)

No.

Names of documents containing illegal regulations

Contents subject to handling

1

Cao Bang province

1. Decision No. 3097/2004/QD-UB of December 6, 2004, of the People's Committee of Cao Bang province, promulgating the Regulation on a number of preferential mechanisms and policies for investment in the province

To annul Article 16 of the Regulation

2. Decision No. 1079/2004/QD-UB of June 25, 2004, of the People's Committee of Cao Bang province, promulgating the Provisional Regulation on a number of policies applicable to border-gate economic zones

To annul Point a, Clause 1, Article 13 of the Provisional Regulation

2

Lao Cai province

3. Decision No. 496/QD-UB of October 25, 2002, of the Provincial People's Committee, promulgating preferential policies for investment in 4 key industrial parks of Lao Cai Border-Gate Economic Zone

To annul Clause 1 and the second em rule, Clause 5, Article 2 of the Decision

3

Yen Bai province

4. Decision No. 36/2003/QD-UB of February 18, 2003, of the People's Committee of Yen Bai province, promulgating the Regulation on policies to encourage investment in Yen Bai province

To annul Articles 5, 7 and 14 and Points a, b and c, Clause 1, Article 16 of the Regulation

4

Dien Bien province

5. Decision No. 33/2003/QD-UB of May 6, 2003, of the People's Committee of former Lai Chau province, promulgating the Regulation on management of, and preferential policies applicable to, Pa Khoang Tourist Zone (of former Lai Chau province)

To annul Points c, d and e, Clause 2, Article 17 of the Regulation

6. Decision No. 46/2004/QD-UB of August 6, 2004, of the People's Committee of Dien Bien province, promulgating the Provisional Regulation on preferences to encourage investment in Dien Bien province

To annul Point 3.2, Clause 3 of Article 4, and Article 5 of the Provisional Regulation

5

Quang Ninh province

7. Decision No. 2045/2004/QD-UB of June 18, 2004, of the Provincial People's Committee, promulgating the Regulation on a number of policies to encourage investment activities in the province

To annul Clause 2.1, Article 2 of the Regulation

8. Decision No. 445/2001/QD-UB of March 2, 2001, of the Provincial People's Committee, promulgating the Regulation on a number of preferential policies to encourage investment in Cai Lan Industrial Park, Quang Ninh province

To annul Article 5 of the Regulation

6

Bac Giang province

9. Decision No. 34/2002/QD-UB of March 7, 2002, of the Provincial People's Committee, promulgating the Regulation on preferences to encourage investment in Bac Giang province in the 2002-2010 period

To annul Clause 2, Article 10 and Point b, Clause 3, Article 15 of the Regulation

7

Bac Ninh province

10. Decision No. 107/2002/QD-UB of August 30, 2002, of the Provincial People's Committee, promulgating the Regulation on preferences to encourage investment in tourist zones in Bac Ninh province

To annul Articles 5 and 8 of the Regulation

8

Vinh Phuc province

11. Decision No. 2475/2002/QD-UB of July 9, 2002, of the People's Committee of Vinh Phuc province, promulgating the Regulation on preferences for investment in Vinh Phuc province

To annul Article 4 of the Regulation

9

Hoa Binh province

12. Decision No. 31/2002/QD-UB of November 25, 2002, of the Provincial People's Committee, promulgating the Regulation on investment preferences, and procedures for licensing foreign direct investment projects and domestic investment projects in Hoa Binh province

To annul Point d, Clause 2, Section I of the Regulation

10

Ha Tay province

13. Decision No. 15/2005/QD-UB of January 12, 2005, of the People's Committee of Ha Tay province, promulgating the Regulation on a number of policies to encourage investment in the province

To annul Point 2.3, Clause 2, Article 4 of the Regulation

11

Thai Binh province

14. Decision No. 52/2002/QD-UB of July 25, 2002, of the Provincial People's Committee, promulgating the Regulation on a number of policies to encourage investment inThai Binh province

To annul Clauses 6 and 7, Article 2 of the Regulation

12

Nam Dinh province

15. Decision No. 2816/2001/QD-UB of November 29, 2001, of the Provincial People's Committee, promulgating the Regulation on a number of mechanisms and policies to encourage investment in and development of the Western Nam Dinh City Industrial Park

To annul Article 10 of the Regulation

13

Ninh Binh province

16. Decision No. 568/2002/QD-UB of April 10, 2002, of the Provincial People's Committee, promulgating the Regulation on preferences to encourage investment in industrial parks and tourist zones in the province

To annul Article 4 of the Regulation

17. Decision No. 532/2004/QD-UB of March 11, 2004, of the People's Committee of Ninh Binh province, promulgating the Regulation on preferences to encourage investment in Gian Khau Industrial Park

To annul Article 5 of the Regulation

14

Thanh Hoa province

18. Decision No. 975/2002/QD-UB of April 3, 2002, on preference policies to encourage investment in Nghi Son Industrial Park

To annul Clause 1, Article 2 of the Decision

19. Decision No. 467/2003/QD-UB of February 12, 2003, promulgating the Provisional Regulation on a number of policies to encourage development of industry, cottage industry and handicrafts in the province

To annul Article 8 of the Provisional Regulation

15

Ha Tinh province

20. Decision No. 2632/QD-UB-CN2 of November 11, 2003, of the Provincial People's Committee, promulgating the Regulation on a number of investment preference and support policies towards investment projects on development of industry, cottage industry and handicrafts in Ha Tinh province

To annul Articles 4, 6 and 8 of the Regulation

16

Thua Thien-Hue province

21. Decision No. 1546/QD-UB of June 12, 2002, of the People's Committee of Thua Thien-Hue province, promulgating the Regulation on a number of policies on investment preferences and production/business supports applicable in the province

To annul Clause 4 of Article 3, and Article 5 of the Regulation

17

Quang Nam province

22. Decision No. 13/2003/QD-UB of January 30, 2003, of the Provincial People's Committee, on the Regulation on preferential mechanisms to encourage investment in Quang Nam province

To annul Clauses 1 and 2 of Article 5; Article 6; Clauses 3 and 4 of Article 7; and Article 10 of the Regulation

23. Decision No. 40/2003/QD-UB of May 14, 2003, promulgating the Regulation on preferential mechanisms to encourage investment in and manage industrial clusters in Quang Nam province

To annul Article 8 of the Regulation

18

Quang Ngai province

24. Decision No. 02/2002/QD-UB of January 4, 2002, promulgating the Regulation on a number of preferential mechanisms and policies for investment in Dung Quat Industrial Park in Quang Ngai province (the 2002-2005 period)

To annul Point b, Clause 2, Article 8 of the Regulation

25. Decision No. 03/2002/QD-UB of January 4, 2002, of the Provincial People's Committee, promulgating the Regulation on preferential mechanisms and policies for investment in Quang Ngai province's industrial parks (the 2002-2005 period)

To annul Clause 1 of Article 8, and Article 10 of the Regulation

26. Decision No. 93/2003/QD-UB of May 16, 2003, of the Provincial People's Committee, promulgating the Regulation on a number of policies to encourage investment in and development of the province's tourist zones and sites

To annul Clause a of Article 5, and Article 6 of the Regulation

27. Decision No. 94/2003/QD-UB of May 20, 2003, of the Provincial People's Committee, promulgating the Regulation on a number of policies to encourage investment in and development of industry, cottage industry, handicrafts and rural crafts in Quang Ngai province

To annul Clause 1, Article 5 of the Regulation

19

Gia Lai province

28. Decision No. 451/QD-UB of June 11, 2003, of the Provincial People's Committee, promulgating the Regulation on investment incentives and supports in Gia Lai province

To annul Clause 2 of Article 6, and Article 7 of the Regulation

20

Dak Lak province

29. Decision No. 3730/2001/QD-UB of November 30, 2001, of the Provincial People's Committee, promulgating the Regulation on policies to encourage and guarantee foreign direct investment in Dak Lak province

To annul Article 3 of the Regulation

21

Dac Nong province

30. Decision No. 440/QD-UB of May 7, 2004, of the Provincial People's Committee, promulgating the Regulation on policies to encourage investment in and development of industry and tourism in the province

To annul Clause 2, Article 5 of the Regulation

22

Lam Dong province

31. Decision No. 126/2002/QD-UB of September 16, 2002, of the People's Committee of Lam Dong province, promulgating the Regulation on a number of preferential policies for foreign investment in Lam Dong province

To annul Point 1, Section I of the Regulation

32. Decision No. 129/2002/QD-UB of September 16, 2002, of the People's Committee of Lam Dong province, promulgating the Regulation on a number of investment preference policies applied in the province under the Domestic Investment Promotion Law

To annul Point 1.1 of Clause 1, and Clause 2, Section II of the Regulation

23

Phu Yen province

33. Decision No. 1217/2003/QD-UB of May 23, 2003, of the Provincial People's Committee, promulgating the Regulation on policies to encourage investment in and development of cottage industry, handicrafts and craft villages in Phu Yen province

To annul Articles 4 and 5 of the Regulation

34. Decision No. 1228/2003/QD-UB of May 26, 2003, promulgating the Regulation on operation mechanisms and measures to encourage investment in, industrial clusters and points in Phu Yen province

To annul Articles 12 and 15 of the Regulation

24

Khanh Hoa province

35. Decision No. 125/2004/QD-UB of May 10, 2004, of the Provincial People's Committee, promulgating the Regulation on a number of investment preference policies applicable to the province's industrial parks

To annul Articles 10, 11 and 12 of the Regulation

36. Decision No. 126/2004/QD-UB of May 10, 2004, of the Provincial People's Committee, promulgating the Regulation on a number of preferential policies for domestic investment in the province

To annul Article 6 of the Regulation

37. Decision No. 127/2004/QD-UB of May 10, 2004, of the Provincial People's Committee, promulgating the Regulation on a number of preferential policies for foreign direct investment in the province

To annul Articles 4 and 7 of the Regulation

25

Binh Thuan province

38. Decision No. 50/2003/QD-UB of August 1, 2003, of the Provincial People's Committee, promulgating the Regulation on policies to attract investment in Binh Thuan province in the 2003-2010 period

To annul Clause 3 of Article 4, and Articles 7 and 8 of the Regulation

26

Long An province

39. Decision No. 2613/2004/QD-UN of August 4, 2004, of the Provincial People's Committee, promulgating the Regulation on a number of preferential policies for domestic and foreign investment in Long An province

To annul Articles 4 and 6 of the Regulation

27

Vinh Long province

40. Decision No. 2642/2003/QD-UB of August 19, 2003, of the Provincial People's Committee, promulgating the Regulation on policies on investment incentives and preferences in Vinh Long province

To annul Clause 2 of Article 15 and Clause 3, Section I, Article 19 of the Regulation

28

Former Can Tho province (now including Can Tho city and Hau Giang province)

41. Decision No. 45/2001/QD-UB of June 8, 2001, of the People's Committee of former Can Tho province, promulgating the Regulation on implementation of a number of policies on investment incentives and preferences to develop industrial production, cottage industry and handicrafts in former Can Tho province

To annul Point b, Clause 3, Article 8 of the Regulation

42. Decision No. 03/2002/QD-UB of January 11, 2002, of the People's Committee of former Can Tho province, amending and supplementing Decision No. 45/2001/QD-UB of June 8, 2001, of the People's Committee of former Can Tho province

To annul geographical areas eligible for investment preferences defined in Clause 2, Article 1 of the Decision

29

Ben Tre province

43. Decision No. 1981/2004/QD-UB of June 1, 2004, promulgating the Regulation on a number of preferential policies for investment in the province

To annul Point b, Clause 1, Article 4 (with incorrect list of geographical areas) of the Regulation

44. Decision No. 1996/2004/QD-UB of June 2, 2004, promulgating a number of policies for investment in Giao Long Industrial Park

To annul Clause 2, Article 4 of the Regulation

30

Bac Lieu province

45. Decision No. 30/2003/QD-UB of October 13, 2003, of the Provincial People's Committee, promulgating the Regulation on investment attraction policies

To annul Point b of Clause 1; Points a and b, Clause 3, Section I of the Regulation

31

Ca Mau province

46. Decision No. 92/2003/QD-UB of December 31, 2003, of the Provincial People's Committee, promulgating the Regulation on policies to encourage investment in Ca Mau province

To annul Point 2.1.1, Clause 2, Article 4 of the Regulation